MacLorry-
You have come to some conclusions that are quite incorrect.
"Sorry, it doesn�t work that way unless the entire world were to all change to gold backed money all at the same time. If just the U.S. made the change the price of gold would go to $15,394 per oz in the U.S. by law (fiat), but a person in Candida would pay nearly the same for gold as they did the day before the U.S. switched, so to him a U.S. dollar would only be worth 11.3 cents."
Do you know the history of banking? Do you know that the USD is the worlds reserve currency? Do you know that all other countries currencies rely on the value of the USD to back their currency? Do you know that the US went off of the gold standard in 1971 when Nixon took us off of the gold standard? As the worlds reserve currency, when we went off of the gold standard, all of the worlds currencies became fiat currencies. In short, if the USD became worth 11.3 cents over night, all of the worlds currencies would decline to the same degree. Think about what you are saying. You are saying that if the worlds reserve currency, which is currently backed by nothing, was to become backed by gold, that its value would decrease?????????????? You are also saying that somehow all of the worlds currencies would be able to somehow ignor the value of the US dollar which is the only thing backing thier own currency????????????? Regardless of how the value of the dollar would change, all of the worlds currencies would change roughly to the same degree.
"The day before the U.S. switched a guy in Candida with 2 oz of gold could only buy a cheap used car in the U.S., but a day later he could buy a nice new car for the same 2 oz of gold. The U.S. would make the world rich and ourselves poor."
No we would not make ourselves poor. The value of all other currencies would change to the same degree as the US dollar, because its value is dependent upon the value of the US dollar. Remember, the US dollar is the worlds reserve currency. Yes the guy in Canada or anywhere else in the world, could buy a new car with 2 ounces of gold. This is the point in buying precious metals now!
"People who have a bunch of gold might think they would get rich quick, but if they are in the U.S. that wouldn't happened because the government would confiscate most private gold as they have done before and at a price they set."
I don't think that confiscation would work because they can't confiscate all of the gold in the world. With that being said, I suppose that they might try - - - - they have done alot of stupid things before! Check your history. They tried this once before and it didn't work out for them very well.
Last edited by SodFarmer; 02/20/12.
